MICROSTRATEGY RAISING $500M TO BUY BITCOIN

MicroStrategy announced on Friday that it was raising $500m - and that it may use it to buy Bitcoin. I think we have all come to know Michael Saylor well enough by now.

Let their be no doubt, he's buying more Bitcoin.

This is the first time since the bear market started in November, 2021 that MicroStrategy has tapped investors to raise capital.

It borrowed $205m against its Bitcoin holdings in March, 2022 from Silvergate Bank as a 'proof of concept' - and then bought more Bitcoin with the funds.

Throughout the bear-market MicroStrategy has been buying Bitcoin with excess cashflows, but this new raising marks a return to the bull-market days, when it was comfortably raising $500m to +$1b to satisfy demand from institutions.

Are institutions coming to Bitcoin?

There are some signs that this is the case.

BLACKROCK

The fund management giant has been warming to Bitcoin in 2022 and counts the world's biggest institutions, including cenral banks, among its customers.

MARCH: BlackRock acknowledged that BTC could benefit from economic circumstances brought on by Russia's invasion of Ukraine

APRIL: BlackRock says it is studying Bitcoin

AUGUST: BlackRock launches Bitcoin trading and a private trust for institutions.

Citibank joins Fidelity, State Street and others

None of this happens unless there is demand from institutional clients. Bitcoin is not only part of the conversation, clients are demanding that their banking partners get ready to service their needs. Allocations will be made IMO.

Bitcoin has come a long way, but the bear market price action has distracted most people from this.

MicroStrategy was the first listed company in the USA to buy Bitcoin, and I suspect they are a leading indicator or things to come from corporate America.

Bitcoin Price Bottom?

Are we there yet? Maybe.

The future is always uncertain, but it's starting to feel more and more like the bottom is in. Others are still calling for $10K!

I don't know, so let's see.

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Cheers,

Archie